1. Chapter 5 Consumer Behavior
Idil Yaveroglu
Lecture Notes

2. “It’s really hard to design products by focus groups
“It’s really hard to design products by focus groups. A lot of times, people don’t know what they want until you show it to them.” – Steve Jobs. Businessweek, 1998

3. Consumer Behavior
The buying behavior of final consumers – individuals and households who buy goods and services for personal consumption.
Most buying decisions are made at an unconscious level – we don’t really know “why we buy?” – Black box

4. Characteristics Affecting Consumer Behavior
Cultural factors
Culture
Forms a person’s wants and behavior
Subculture
Groups with shared value systems
Social Class
Society’s divisions who share values, interests and behaviors

5. Characteristics Affecting Consumer Behavior
Social Factors
Groups
Membership
Reference
Aspirational
Opinion leaders
Buzz marketing
Family
Many influencers
Roles and status

6. Characteristics Affecting Consumer Behavior
Personal Factors
Age and Life Cycle Stage
Occupation
Economic Situation
Lifestyle
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Personality and Self Concept
“We are what we have”
Mac vs. PC ads -
Think different

8. Characteristics Affecting Consumer Behavior
Psychological Factors
Motivation
Perception
Learning
Beliefs and attitudes

9. Psychological Factors - Motivation
A motive is a need that is sufficiently pressing to direct the person to seek satisfaction – It is our inner drive for behavior.
Motivation research is based on Freud. Looks for hidden and subconscious motivation
Maslow ordered needs based on how pressing they are to the consumer

10. Maslow’s Hierarchy of Needs

11. Psychological Factors - Perception
Perception is the process by which people select, organize, and interpret information.
Perception Includes:
Selective attention
Consumers screen out information
Selective distortion
People interpret to support beliefs
Selective retention
People retain points to support attitudes

12. Subliminal Stimuli

13. Subliminal Stimuli

14. Subliminal Stimuli

15. Psychological Factors
Learning
Learning describes changes in an individual’s behavior arising from experience
Belief
a descriptive thought about a brand or service
may be based on real knowledge, opinion, or faith
Attitude
describes a person’s evaluations, feelings and tendencies toward an object or idea
They are difficult to change

19. The Buyer Decision Making Process

20. Need Recognition
Result of an imbalance between actual and desired states.
Usually an internal or external stimulus will lead to need recognition.

21. Information Search External Information search
Internal Information Search
Recall information in memory
External Information search
Seek information in outside environment
Non-marketing controlled
Marketing controlled

22. Evaluation of Alternatives
Evoked Set
Purchase!
Evaluative Criteria Evaluative criteria - are the factors which represent both the objective attributes of a brand and the subjective ones a consumer uses to compare different products and brands. (cut off criteria, ranking attributes by importance) Consideration Set (evoked set) - is the group of brands that a consumer would consider acceptable from among all the brands in the product class of which he or she is aware.

23. Evaluative Criteria

24. Postpurchase Behavior
Satisfaction with the purchase depends on whether consumers’ expectations were met with the products perceived performance.
Perceived Performance<Expected  Dissatisfied
Perceived Performance>= Expected  Satisfied

25. Postpurchase Behavior
Cognitive Dissonance ?
Did I make a good decision?
Did I buy the right product?
Did I get a good value?
Can minimize through:
Effective Communication
Follow-up
Guarantees Warranties
Marketing

26. Types of Buying Decision Behavior

27. Level of Involvement
Consumers’ level of involvement will be greater when;
The consumer has low previous experience.
The consumer has high level of interest.
The consumer has higher perceived risk.
Social visibility of the product is high.
Level of involvement will also change based on the purchase situation (eg. Buying a gift)